I always keep my head on a swivel for my next potential buy. And right now, I see a number of FTSE shares that look like they could be cracking additions to my portfolio.
Here’s one FTSE 100 and one FTSE 250 stock I’d love to buy today if I had the cash.
Games Workshop
The first is Games Workshop (LSE: GAW). After posting a strong 8.3% gain last year, the stock has kept up its form in 2024. Year to date, it has climbed 7.3%.
The business has experienced major growth over the last decade. However, it has no plans to slow down. Last year, the firm posted its best-ever results. For the 53 weeks ended June 2, revenue grew 11.1% to £494.7m while earnings per share climbed 11.9% to 458.8p per share. That’s impressive given the tough trading conditions we’ve faced.
I’m excited by the moves the firm has made to grow its licensing business. Its largest collaboration in this space has come with Amazon. Last year, Games Workshop announced a deal with the tech giant that will see its Warhammer universe turned into a string of TV and film content.
With over 200m people using Amazon Prime, that will expose the brand to a vast number of potential new customers.
Games Workshop is the clear leader in the miniature wargames market, which is another reason I’m a big fan. However, I am wary of rising competition. As the industry becomes more popular, it’s very likely that more players will enter the space.
But with its loyal customer base, I’m still backing Games Workshop. With its strong growth in recent years, the firm is also eyeing expansion into North America and Europe.
National Grid
I’m also keeping a close eye on National Grid (LSE: NG.). The stock has had a turbulent year. After taking a 20% hit back in May, it has staged a decent recovery. Year to date, its shares are up 6.7%.
There are a couple of reasons I’m drawn in. The first is its chunky dividend yield. As I write, it yields 5.5%. That’s above the FTSE 100 average of 3.6%.
There’s a caveat though. Its payout will fall in this financial year to March 2025 after the business announced a 7-for-24 rights issue earlier this year. This move will increase share count and therefore dilute shareholders returns. That said, it’s still set to stand at around 5%.
On top of that, I like National Grid for its defensive nature. The business keeps Britain powered and that means it often provides stable revenues. Over the last five years, the stock has been a strong performer on the FTSE 100, returning 27.8%.
The rights issue it announced in May was the catalyst behind its steep share price decline. And it does pose a risk to National Grid. Say the business doesn’t see the return on investment it has set out to achieve? That could see its share price suffer. Restructuring often comes with these sorts of threats.
But while it may lead to short-term volatility, I think it could be a great move in the long run. With the money it raises, National Grid is aiming to invest £60bn into its operations over the next five years.
This post was originally published on Motley Fool
